MIRA
INFORM REPORT
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Report Date : |
09.05.2007 |
IDENTIFICATION DETAILS
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Name : |
TELEVISION EIGHTEEN INDIA LIMITED |
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Registered Office : |
601, 6TH Floor, Commercial Tower, Hotel Le - Meridien,
Raisina Road, New Delhi – 110001 |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.09.1993 |
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Com. Reg. No.: |
55-55351 |
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CIN No.: [Company
Identification No.] |
L7489DL1993LC055351 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT09556B |
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PAN No.: [Permanent
Account No.] |
AAAC72659P |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Subject is engaged as Broadcasters. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 8680800 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company and a part of TVI8
group. The company is progressing well. Directors are reported as experienced
and respectable businessmen. Trade relations are reported as fair. Business
is active. Payments are usually correct and as per commitments. Fundamentals are strongly and healthy. The company can be considered normal for business dealings aat usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long run. |
LOCATIONS
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Registered Office : |
601, 6TH Floor, Commercial Tower, Hotel Le - Meridien,
Raisina Road, New Delhi – 110001 |
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E-Mail : |
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Website : |
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Corporate Office : |
Express Trade tower, Plot No. 15-16, Sector -16 A, Noida, Uttar
Pradesh – 201301. |
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Tel. No.: |
91-120-5341818,3987777 |
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Fax No.: |
91-120-5324106 |
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E-Mail : |
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Mumbai Address : |
Empire Mills Complex, 4/4, Senapati Bapat Marg, Lower Parel, Mumbai –
400013, |
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Tel. No.: |
91-22-6666-7777/66509580 |
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Fax No.: |
91-22-6661 8980 |
DIRECTORS
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Name : |
Mr. Raghav Bahl |
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Designation : |
Director |
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Qualification: |
44 Years |
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Name : |
Mr. P. N. Bahl |
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Designation : |
Director |
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Name : |
Mr. Hari .S. Bhartia |
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Designation : |
Director |
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Name : |
Mr. Manoj Mohanka |
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Designation : |
Director |
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Name : |
Mr. Sanjay Ray Chaudhuri |
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Designation : |
Director |
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Qualification: |
39 Years |
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Name : |
Mrs. Vandana Malik |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. G. K. Arora |
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Designation : |
Chairman |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Category
|
No. of
Shareholders |
No. of Shares |
Percentage of
Holding |
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|
15785 |
3070753 |
14.59 |
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Bodies Corporatos |
733 |
1830380 |
8.70 |
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FLS/ Mutual Funds/ UTI/ Bank |
37 |
5495790 |
26.12 |
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Indian Promoters/ Person Acting in Concert |
24 |
5706111 |
27.12 |
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NRIs/ OCBs/ Flls |
89 |
4582320 |
21.78 |
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Trusts |
8 |
357870 |
1.70 |
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Total |
16676 |
21043224 |
100 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged as Broadcasters. |
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GENERAL INFORMATION
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No. of Employees : |
2500 |
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Bankers : |
ICICI Bank Limited ING Vysya Bank Limited Yes Bank Bank of State Bank of State Bank of State Bank of State Bank of Travancore |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Subsidiaries : |
◙
e- Eighteen.com Limited (E-18) ◙
Moneycontrol Dol Com India Limited (MCD) ◙
iNew. Com Limited (IN) ◙
Television Eighteen Mauritius Limited (TEML) ◙
Television Eighteen Commoditiescontrol.comLimited
(TECCL) ◙
TEML Broadcast Maurities Limited (formely CNBC
India Limited) ◙
SRH Broadcast News Holding Private Limited (SRH) ◙
Global Broadcast News Limited (GBN) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.250 million |
|
500000 |
Preference Shares |
Rs. 10/- each |
Rs. 5.000 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
21043224 |
Equity shares |
Rs. 10/- each |
Rs. 0.210 million |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
210.4 |
169.0 |
149.3 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1959.8 |
925.5 |
476.2 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2170.2 |
1094.5 |
625.5 |
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LOAN FUNDS |
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1] Secured Loans |
1051.4 |
759.4 |
427.8 |
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2] Unsecured Loans |
800.2 |
194.0 |
89.3 |
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TOTAL BORROWING |
1851.6 |
953.4 |
517.1 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4021.8 |
2047.9 |
1142.6 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
822.3 |
627.3 |
267.4 |
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Capital work-in-progress |
15.7 |
06.3 |
07.4 |
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INVESTMENT |
2050.6 |
1029.0 |
544.2 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
05.1
|
04.4 |
18.7 |
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Sundry Debtors |
808.8
|
436.5 |
281.1 |
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Cash & Bank Balances |
331.8
|
60.7 |
47.1 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
799.1
|
351.9 |
171.3 |
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Total
Current Assets |
1944.8
|
853.5 |
518.2 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
693.0
|
428.1 |
196.8 |
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Provisions |
132.6
|
59.0 |
22.0 |
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Total
Current Liabilities |
825.6
|
487.1 |
218.8 |
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Net Current Assets |
1119.2
|
366.4 |
299.4 |
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MISCELLANEOUS EXPENSES |
14.0 |
18.9 |
24.2 |
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TOTAL |
4021.8 |
2047.9 |
1142.6 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
1271.0 |
814.5 |
431.2 |
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Other Income |
46.8 |
20.4 |
14.2 |
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Total Income |
1317.8 |
818.3 |
457.1 |
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Profit/(Loss) Before Tax |
316.5 |
188.3 |
(00.2) |
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Provision for Taxation |
121.5 |
06.6 |
39.1 |
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Profit/(Loss) After Tax |
195.0 |
194.9 |
(39.3) |
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Expenditures : |
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Manufacturing Expenses |
168.5 |
148.9 |
111.6 |
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Raw Material Consumed |
05.1 |
02.5 |
01.5 |
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Interest |
119.8 |
61.3 |
33.3 |
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Insurance Expenses |
303.3 |
165.9 |
113.2 |
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Power & Fuel |
09.0 |
06.2 |
05.6 |
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Depreciation & Amortization |
130.5 |
91.4 |
28.9 |
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Other Expenditure |
265.1 |
153.8 |
163.2 |
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Total Expenditure |
1081.3 |
630.000 |
457.3 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 |
|
Type |
|
|
|
|
Sales
Turnover |
|
|
1923.700 |
|
Other
Income |
|
|
0.000 |
|
Total
Income |
|
|
1923.700 |
|
Total
Expenditure |
|
|
1394.800 |
|
Operating
Profit |
|
|
528.900 |
|
Interest |
|
|
164.000 |
|
Gross
Profit |
|
|
364.900 |
|
Depreciation |
|
|
177.700 |
|
Tax |
|
|
(20.400) |
|
Reported
PAT |
|
|
207.600 |
|
Dividend
(%) |
|
|
400.00 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.86 |
0.85 |
0.42 |
|
Long
Term Debt-Equity Ratio |
0.72 |
0.74 |
0.41 |
|
Current
Ratio |
1.58 |
1.52 |
2.41 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.35 |
1.38 |
1.35 |
|
Inventory |
267.58 |
70.52 |
35.06 |
|
Debtors |
2.04 |
2.27 |
1.72 |
|
Interest
Cover Ratio |
3.64 |
4.07 |
1.03 |
|
Operating
Profit Margin(%) |
44.59 |
41.87 |
14.66 |
|
Profit
Before Interest And Tax Margin(%) |
34.33 |
30.64 |
7.95 |
|
Cash
Profit Margin(%) |
25.61 |
35.15 |
-11.20 |
|
Adjusted
Net Profit Margin(%) |
15.34 |
23.93 |
-17.90 |
|
Return
On Capital Employed(%) |
14.45 |
15.86 |
3.01 |
|
Return
On Net Worth(%) |
11.95 |
22.66 |
-9.41 |
LOCAL AGENCY FURTHER INFORMATION
Website Details:
Subject is a, India's premier
business and consumer news broadcaster and leading media content provider, was
incorporated on 24th Sep 1993 as Television Eighteen India Private Ltd. It Became
a public limited Company in 2nd November 1994 and Subsequently Renamed as
Television Eighteen India on 2nd Jan 1995. Over the last decade, the Company
has provided prime time television content to almost all leading satellite
channels in
CNBC TV18 is
TV18 owns studios in
At Present the TV18 India Ltd has five Subsidiaries namely Television
Eighteen Mauritus Ltd, e-eighteen.com Ltd, I.News.com, Eighteen Entertainment
India Ltd, Money Control Dot Com India Ltd and SRH Broadcast News Holdings pvt
Ltd.
In 1996 the Company set up a wholly owned Subsidiary in Mauritius i.e's
Television Eighteen Mauritius Ltd on receiving requisite consent from the
Department of company affairs and reserve Bank of India. It also entered in to
joint venture through its subsidiary to launch Asia Business News
In 1997, this venture suffered a major setback as ABNi, which was
providing around 50% of the Companies revenue closed down following the merger
of its parent, ABN with CNBC Asia, but regained its relationship the CNBC in
2003. CNBC-TV18 will now jointly brand a channel which was operated by TV18s
Subsidiary and TV18 shall now own nearly 90% stake in the Channel and balance
held by the CNBC Asia Pacific
In Dec 1999, the company came out with a public issue of 29,36,000 equity
shares of Rs.10/- each at a premium of Rs.170/- per share. In march 2000 it
incorporated e-eighteen.com pvt ltd, a subsidiary to house its internal
interests. The subsidiary has acquired Moneycontrol Dot Com Private Ltd, the
Company owning the highly successful financial portal, Money control.com
During 2001-2002, the entertainment part of the Companies business was
hived off to 100% subsidiary viz Eighteen Entertainment India Ltd.
During 2002-2003 the company successfully restructured its relationship
with CNBC in accordance with the new government guidelines for new channels.
Tv18 previously held a 49% stake in the CNBC India Joint Venture in
In 2004 A Large 40,000 Sq Ft plus facility was set up in Mumbai with
state-of-the-art broadcast equipment and studios.
During 2005 the Company entered in to General News Space. To Facilite
this ambitious expansion, the Company started work on a 60,000 Sq ft studio in
Noida, which will be operational in the fourth quarter of the year. Turner
International (Turner) and Global Broadcast News (GBN), a TV18 Group Company,
announced a partnership to launch a co-branded, 24-hour, English-language
general news channel in
Under the terms of the agreement, GBN's proposed channel - formerly known
as India Broadcast News (IBN) and now co-branded as CNN-IBN - will have access
to CNN's trademark live breaking news as well as key feature programmes. This
unique alliance will, for the first time ever, enable Indian viewers to view
local news as well as relevant global news from CNN, the world's news leader,
on the same platform. The new channel will focus on providing robust and high
quality news from every corner of
Headquartered in
GBN, a TV18 Group Company, is a 74:26 joint venture between the TV18
Group and professionals - Rajdeep Sardesai, Sameer Manchanda and Haresh Chawla.
GBN's charter is to launch channels in the general news space under the
editorial leadership of Sardesai, one of
The company during 2005-2006, acquired a 50% stake in Channel 7 - a
general news channel in Hindi, owned by Dainik Jagran Groupin April 2006. TV 18
group has recently revamped the editorial team and relaunched the channel with
a new international look in June 2006. The company has done a JV with Asia's
leading e-recruitment provider-jobstreet.com for a job search portal and is
soon to launch yatra.in-
Company Details:
Television Eighteen (TV18) is
Is
CNBC-AWAAZ
AWAAZ is
CNN-IBN
A service of TV18 and Time Warner,
CNN-IBN is
IBN 7
IBN 7, the latest entrant into the TV18 family, has the most respected Hindi
news team under the leadership of Rajdeep Sardesai and Ashutosh. IBN 7 has doubled
its viewership within six weeks of launch and is set to become the leading
Hindi news channel of the country. IBN 7 is redefining the news genre by
providing hard news with an in-depth perspective.
Moneycontrol
Moneycontrol is
IBNlive
IBNlive is
PowerYourTrade
is a financial advisory portal,
delivering a comprehensive mix of expert advice, stock news and analysis to
investors and traders. This site has
CommoditiesContro
India's first and most credible commodities information and research service
with more than 30,000 paid subscribers and six million page views a month,
CommoditiesControl brings its users a deeper understanding of the Indian
commodities space, with coverage of real-time market information and the
interplay between the various market participants, through first hand access to
prices from over 100 spot markets.
JobStreet
TV18 has entered
the e-recruitment market space by acquiring JobStreet
Yatra
Yatra provides travel-related information, pricing, availability and
reservations for airlines, hotels, railway, buses and car rentals across 5000
large cities and small rural areas throughout
cricketizens
The site was launched in 2000 by Walchand CricketNext.Com Limited and
has been recently acquired by TV18 Network and also forms part of Web18. It
offers volumes of information and opinion, not to speak of contests and loads
of fun. CricketNext.Com recognises the fact that the medium allows ready
interactivity. The interactive features include a daily poll question,
celebrity chats and discussion boards besides encouraging cricketizens to
express themselves by writing in their own columns.
.compareindia
The site was recently acquired by TV18 Network and forms a part of Web18. The
uniqueness of the portal lies in the fact that it operates at two levels: at
the back-end, it is a research organization and at the front-end, it is a free
information service. It uses research as a tool to provide consumers free
information on products they want to buy. Currently, the site features 37
product categories: Audio systems, televisions, washing machines, microwave
ovens, refrigerators, fax machines, photocopiers, and printers, amongst others.
Tech2
Tech2.com is Television 18's integrated technology media brand. It
includes the website, www.tech2.com,
the Tech Shows on CNBC-TV18 and CNN-IBN, and in the near future, Events as well
as a Mobile Platform.
HomeShop18 (HS18)
HomeShop18 (HS18) is a new venture from the TV18 Group,
Studio 18
Studio 18 is the entertainment division of the Network 18 Group. Our
business model encompasses a 360 degrees approach to the film business that includes
Production, Acquisition, worldwide Distribution, Marketing, Syndication, Home
Video and Music Label.
NewsWire18 Ltd
NewsWire18 Ltd is a part of the Television Eighteen group. NewsWire18
was formed by acquiring the staff and business of CRISIL MarketWire Ltd,
Capital18
Capital18 is the group’s venture capital and private equity arm focused
on making investments in media, entertainment and technology ventures.
2622
2622 is TV18's mobile short code, which is powered by the in-depth and
real time content of the entire group. This mobile platform uses robust and
scalable state-of-the-art technology to deliver millions of messages every
month on news and information to the most affluent audiences, while they are on
the go. Latest breaking news, news headlines, stock prices, indices, and even
recommendation of portfolios are available on mobile phones
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.93 |
|
|
1 |
Rs.81.20 |
|
Euro |
1 |
Rs.55.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|